Sole trader letting property to own ldt co.

Sole trader letting property to own ldt co.

Didn't find your answer?

I have a client who wishes to purchase property, but then sub let to his own
ltd.co letting company that then in turn sublets to tennants.

Seems he can obtain better credit this way.

Any advice? Can this be done?

Any other ideas?

Replies (1)

Please login or register to join the discussion.

avatar
By NeilW
31st Aug 2007 12:24

Yes
No real problem with the legal structure. The real question is whether you have a formal or informal head lease. IME the head lease to the company is informal.

You generally set it up so that personal income is largely eliminated and surplus rent - less costs - accumulates in the company.

I can see some potential rat traps - CGT issues mostly to do with the existence of the head lease - and I'd be interested to hear if anybody has had such a structure looked at by HMRC.

NeilW

Thanks (0)